This will chronicle trading in the FKLI & FCPO futures. If you don't like what you see/read in this blog, just surf away. These opinions are our personal opinions and just a record of our thoughts..."In evolution, it’s not the biggest, the fiercest nor the smartest that survive, it’s the one that changes the fastest.” I.e. the key word is to adapt the trading style to the markets, until it stops working
Disappointment as Man City lost to a last min goal v Sunderland. Doesn't justify the $millions spent. Just like in trading, the bigger they are no matter how much $$ they think they have, manipulation does not pay off. Case in point FCPO....
20100827 HP and Dell are having a takeover battle over 3PAR, a cloud computing company. .... the employees and owners of 3PAR who has any share options are laughing to the bank. HP and Dell are both tech companies with huge cashpiles in the billions. Another nail in the double dip story...
I agree with this guy's comments on the Double dipstickers view of the probability of double dip recession. Basically it is FBS. And these ivy leaguers and academics get huge research grants or huge salaries/bonuses, to make the.
But I don't agree that these economists/strategists' are well intentioned. They are basically expousing a view to align market direction to their firm's positions.(eg Goldman Sachs) Don't believe any reseach that a firm which has a proprietary trading desk taking positions. None of the research/advice is independent nor objective.
An interesting insight into human being's biases that will usually stop aspiring individuals succeding at trading or the financial markets...
There are two evolutionary biases common to humans and monkeys, risk aversion and loss aversion. Risk aversion means that given a choice between a safe option (extra $500) and a risky option (a risky bet to risk 1000 to get another 1000) subjects tend to take the easy option. In trading then once a trade goes into profit, the tendency os to take profit quickly and not let the trade run.
The other is loss aversion, which means the subjects hate losses, because they keep thinking in relative terms, eg on where they bought a stock at, and now it has fallen and in a loss situation. They tend to take the more risky situation in the decision tree, ie average the trade down in the hope for a rebound, in order to mitigate the loss, which they hate.
No recession also will be moulded into a recession, but remember it needs 2 consecutive quarters of negative economic growth.(GDP)
They are so powerful that even breaking the law, get charged, just get off scott free with a fraction of their ill gotten profits as fine, no onw went to jail, no fault found or guilt admitted. With that power, they can move the markets at will.
I lean towards the definition of "2 consecutive quarters of negative economic growth"
"In a 1975 New York Times article, economic statistician Julius Shiskin suggested several rules of thumb for defining a recession, one of which was "two down quarters of GDP". In time, the other rules of thumb were forgotten, and a recession is now often defined simply as a period when GDP falls (negative real economic growth) for at least two quarters. Some economists prefer a definition of a 1.5% rise in unemployment within 12 months.
In the United States, the Business Cycle Dating Committee of the National Bureau of Economic Research (NBER) is generally seen as the authority for dating US recessions. The NBER defines an economic recession as: "a significant decline in [the] economic activity spread across the country, lasting more than a few months, normally visible in realGDP growth, real personal income, employment (non-farm payrolls), industrial production, and wholesale-retail sales." Almost universally, academics, economists, policy makers, and businesses defer to the determination by the NBER for the precise dating of a recession's onset and end."
because it is objective. Eiother black or white, not grey. Damn ivy League brains like in Goldman Sachs, lean towards grey to hoodwink the public.
20100823 Daily KLCI RSI(14) has hit the 80 level, extremely overbought? My trading partner alluded me to this fact... Normally when the market tops, it is a process whereby divergence will take effect. With daily rsi>80, inevitably when the market corrects will be a shp one.. Let's if he is correct.
I think the market is at crossroad, either shoot up vertically, or correct sharply...
First Indian to win PGA Tour tournament, does sub continent proud...
Arjun Atwal, above, made history last night when he won the Wyndham Championship by one stroke to become the first Indian to win on the PGA Tour. Atwal, 37, who started the final round with a three-stroke lead, secured victory by sinking a pressure-packed putt for par from seven feet at the final hole.